HWSM: HOTCHKIS & WILEY SMID CAP DIVERSIFIED VALUE FUND
HWSM: Hotchkis & Wiley Smid Cap Diversified Value Fund
The Hotchkis & Wiley Smid Cap Diversified Value Fund (HWSM) is an ETF designed to invest in small and medium-sized companies that are considered "value" stocks. As of October 9, 2026, the fund is trading at $30.15 per share.
What this ETF is trying to do
This fund focuses on "smid cap" companies. This means it looks for businesses that are not massive corporations but are larger than tiny startups. Specifically, it follows a "value" strategy, which generally involves looking for companies that may be priced lower than what they are worth.
What the numbers show
The fund has shown positive growth over the last year. Here is a breakdown of the performance:
• Year-to-Date (YTD) Price Return: The share price has increased by approximately 11.06% since the start of the year.
• One-Year Price Return: The share price has grown by approximately 13.22% over the last 12 months.
• One-Year Total Return: When including distributions, the total return for the last year was approximately 14.74%.
To put this in perspective, an estimated price from roughly one year ago was $26.63. Because the total return (14.74%) is higher than the price return (13.22%), it shows that distributions added to the overall value gained by the fund.
Income and distribution explanation
HWSM provides a distribution yield of approximately 1.20%. This represents the cash paid out relative to the ETF's price. The trailing distributions were $0.36 per share.
It is important to note that the distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. For investors, this means the income does not arrive on a steady monthly or quarterly schedule.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are different things.
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the fund's erosion-risk score is 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are some of the top holdings in the fund (note that this is a partial list):
• Workday Inc Class A (2.05%)
• F5 Inc (1.88%)
• GE HealthCare (1.82%)
• PPG Industries Inc (1.54%)
• APA Corp (1.50%)
Pros
• Positive Returns: The fund has seen both price and total growth over the past year.
• Low Erosion Risk: The data shows no detected price erosion.
Cons
• Irregular Income: Distributions are not frequent, which may make it difficult to rely on for regular cash flow.
Beginner takeaway
HWSM is a fund focused on smaller value companies. It has recently seen its share price and total value grow. While it pays a distribution, the payments are irregular rather than frequent. Always remember that a distribution yield tells you about cash paid out, but it is not the same as your total return.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WORKDAY INC CLASS A | WDAY | 2.05% |
| 2 | F5 INC | FFIV | 1.88% |
| 3 | n/a | GEHC | 1.82% |
| 4 | PPG INDUSTRIES INC | PPG | 1.54% |
| 5 | APA CORP | APA | 1.50% |
| 6 | DOMINION ENERGY INC | D | 1.48% |
| 7 | AMERICAN INTERNATIONAL GROUP INC | AIG | 1.28% |
| 8 | HOST HOTELS & RESORTS INC | HST | 1.07% |
| 9 | MAGNA INTERNATIONAL INC | n/a | 1.04% |
| 10 | ARCH CAPITAL GROUP LTD | ACGL | 1.02% |